DIS – Simple Trading Update – 18 October 2013

simple trading

Earlier this year we responded to a DIS inquiry from Hopeful.  Hopeful asked via askthetrader@theartofsimpletrading if it was still ok to get into the stock.  We thought it was overextended and said as much in this Ask The Trader Video.

DIS has now absorbed and consolidated that run.  It is also approaching resistance for the fifth time and the weekly chart pattern looks like Bull Flag.  While an entry based on the positive Stochastic crossover several weeks ago could have gotten one in at a “better” price, the action since that move has provided confirmation and made a near term break out highly likely.  We especially like the multiple tests of Resistance at the all time high and we think that level will be eviscerated soon.

In our minds, a close below the rising trendline nullifies this setup.